House & Contents
House and contents insurance protects your house and its expensive contents from loss, damage, or theft. It covers events beyond human control, such as fire, theft, storms, floods, earthquakes, subsidence, and water leaks. It also includes areas close to the house, such as the parking shed and garden area.
The basic structure of a house refers to the walls, roof, windows, doors, plumbing, wiring, and permanent fixtures and fittings. The contents refer to the household items present in the house, except its structure. It includes:
- Furniture, rugs, carpets, and decorations
- Clothing
- Electrical appliances
- Curtains and blinds
- Cash and valuables like jewellery (in limited amounts)
House and contents insurance can help repair a house and replace its belongings if they are damaged or stolen by a covered risk. The amount of coverage depends on the value of the home and its contents. It also calculates the level of risk an individual is willing to take.
People who want to protect their valuable investment of life from natural disasters or an unfortunate event of theft should consider house and contents insurance. It rescues your valuable possessions and gives all remuneration in case of property loss.
The Lifecycle Fire and General can assist you in selecting the best house and contents insurance plan that meets your needs while remaining within your budget.
The New Zealand Ministry of Justice’s Crime and Victims Survey (2021) found that the number of burglaries in New Zealand decreased significantly in the previous year. Residential thefts are still the highest three most common crimes, accounting for more than half of all offences in the country.
In December 2022, the Insurance Council of New Zealand (ICNZ) documented ten severe natural disaster incidents in the country, and out of them, seven were floods or storms. Government receives a total of $263 million in claims from these occurrences.
New Zealand is vulnerable to a variety of natural disasters. Because of its topography and location, New Zealand experiences approximately 14,000 earthquakes yearly, at least 150 to 200 of which are more powerful.
- Fixed sum insured — This is the most popular insurance plan among people. In this plan, the individual and the insurer fix the coverage amount of the home against any loss. The insurance company pays the amount for house reconstruction in dollars after the calamity.
- Indemnity (present-day value) — It evaluates the house’s cost before destruction, which is approximate to the home’s depreciated replacement cost. (excluding land) It also considers its age and condition. But it has a limitation; if your residence is old and constructed before 1945, it will give indemnity cover only in case of demolition.
- Total replacement: This policy has the most benefit. According to this policy, after the demolition of the house, the insurer can build or repair the home in its previously mentioned square meter area. The policy includes expert advice and demolition charges.
House and contents insurance offers protection against potential loss or damage with various levels of coverage and features.
- Insurance covers all physical losses and property damage during the policy period.
- Offer alternate living accommodation in case of complete demolition of the house.
- It covers the destruction caused by volcanic eruptions, earthquakes, forest fires,
storms, floods and cyclones. - It protects the house from burglary or theft by covering the cost of locks and keys.
Poor security protection can expose residents to unauthorised access. - Bear the cost of third-party expenses in case of an accident or death.
- Policy customisation is available according to the choice of the client.
Home and contents insurance provide all coverage according to its terms and policy type. Yet it will not give coverage under certain situations.
- House remains unoccupied for more than 60 days.
- There is no coverage for rusting, corrosion, or gradual deterioration of property caused by environmental factors or improper maintenance.
- Damage due to termites or rats.
Availing house and contents insurance can have numerous benefits
- Repairing of damaged property: If a fire, criminal activity, or another covered risk is responsible for the damage of belongings, we give compensation equivalent to your contents’ prices and the amount specified in the policy. You have to pay only the remaining amount.
- Replacement for stolen or damaged property: If any belongings are stolen or destroyed due to fire, burglary, or earthquake, the contents amount will be compensated to you that is equivalent to the replacement cost of items or their cash values. It is stated in the insurance type chosen by insurers. Replacement cost is the cost of purchasing a replacement item of comparable quality and value, whereas real cash value denotes the actual price of items after deducting their depreciation cost.
- Temporary living expenses: If you cannot stay in a house after it gets destroyed. The house and contents insurance will bear living expenses until your home is restored or rebuilt. House rent, food, and other living expenditures include this.
- Liability coverage: If someone physically gets injured near your property or you mistakenly damage someone else’s property, your house and contents insurance will rescue your legal liability. It will pay the medical expenses or repair costs of the third person. It will pay legal bills if you undergo prosecution charges.
- Reduce stress: Home and contents insurance can provide peace of mind by financially protecting you from unexpected events that could affect your home and belongings. You can choose the level of insurance that meets your requirements and financial need. Stay in your home without anxiety about potential hazards.
Without any delay, take insurance coverage for your house and valuable contents. Lifecycle Fire and General is the most popular insurance broker in Auckland, New Zealand. We are committed to giving quality services to our customers.